The water authority said the hike would have a huge impact on its customers, too. Officials said their bills will soar with the PNM increase.

"We're looking at maybe a $10-$15 million impact on us," said David Morris with the water authority.

To offset the higher electricity costs, the water authority may have to up their rates as well.

"At some point, those costs are going to have to be passed along to our ratepayers," Morris said.

So this month, the water authority and dozens of other companies filed a motion to halt PNM's rate negotiations with the state's Public Regulation Commission. The goal of the motion is to have some input and keep costs down.

"We dont feel it's fair to work out a deal without involving who's going to be impacted," Morris said.

It's a discussion that PNM said it is open to, and something that could happen in the next few weeks.

PNM said it could take a few more months to finish negotiations and that growing costs make a rate hike unavoidable.

Officials with the PRC said the PNM case is the most complex it has dealt with in decades, and they will take public comment later this month.